Z 0336

Z‑0336.1 _____________________________________________

SENATE BILL 5142

_____________________________________________

State of Washington 57th Legislature 2001 Regular Session

By Senators Winsley, Long, Fraser, Franklin, Honeyford, Carlson and Kohl‑Welles; by request of Joint Committee on Pension Policy

Read first time 01/12/2001. Referred to Committee on Ways & Means.

_1 AN ACT Relating to continuing law enforcement officers' and

_2 fire fighters' plan 1 split benefit payments to ex spouses of

_3 members pursuant to preretirement divorce orders made after July

_4 1, 2002; and amending RCW 41.26.162, 41.50.670, and 41.50.700.

_5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_6 Sec. 1. RCW 41.26.162 and 1991 sp.s. c 12 s 2 are each amended to

_7 read as follows:

_8 (1)(a) An ex spouse of a law enforcement officers' and fire

_9 fighters' retirement system retiree shall qualify as surviving

10 spouse under RCW 41.26.160 if the ex spouse:

11 ((~~(a)~~)) (i) Has been provided benefits under any currently

12 effective court decree of dissolution or legal separation or in

13 any court order or court-approved property settlement agreement

14 incident to any court decree of dissolution or legal separation

15 entered after the member's retirement and prior to December 31,

16 1979; and

17 ((~~(b)~~)) (ii) Was married to the retiree for at least thirty

18 years, including at least twenty years prior to the member's

19 retirement or separation from service if a vested member.

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_1 ((~~(2)~~)) (b) If two or more persons are eligible for a surviving

_2 spouse benefit under this subsection, benefits shall be divided

_3 between the surviving spouses based on the percentage of total

_4 service credit the member accrued during each marriage.

_5 ((~~(3)~~)) (c) This subsection shall apply retroactively.

_6 (2)(a) An ex spouse of a law enforcement officers' and fire

_7 fighters' retirement system plan 1 retiree who:

_8 (i) Divorced the member before separation from service;

_9 (ii) Entered into the court order or court-approved property

10 settlement agreement incident to the divorce of the member and ex

11 spouse after July 1, 2002; and

12 (iii) Is awarded a portion of the member's benefits for the

13 life of the ex spouse;

14 may continue to receive that portion of the member's benefit after

15 the member's death as if the member was still alive if specified

16 in the court order or court-approved property settlement.

17 (b) This subsection shall not apply retroactively.

18 Sec. 2. RCW 41.50.670 and 1998 c 341 s 513 are each amended to

19 read as follows:

20 (1) Nothing in this chapter regarding mandatory assignment of

21 benefits to enforce a spousal maintenance obligation shall abridge

22 the right of an obligee to direct payments of retirement benefits

23 to satisfy a property division obligation ordered pursuant to a

24 court decree of dissolution or legal separation or any court order

25 or court-approved property settlement agreement incident to any

26 court decree of dissolution or legal separation as provided in RCW

27 2.10.180, 2.12.090, 41.04.310, 41.04.320, 41.04.330, 41.26.053,

28 41.26.162, 41.32.052, 41.35.100, 41.34.070((~~(3)~~)) (4), 41.40.052,

29 43.43.310, or 26.09.138, as those statutes existed before July 1,

30 1987, and as those statutes exist on and after July 28, 1991. The

31 department shall pay benefits under this chapter in a lump sum or

32 as a portion of periodic retirement payments as expressly provided

33 by the dissolution order. A dissolution order may not order the

34 department to pay a periodic retirement payment or lump sum unless

35 that payment is specifically authorized under the provisions of

36 chapter 2.10, 2.12, 41.26, 41.32, 41.35, 41.34, 41.40, or 43.43

37 RCW, as applicable.

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_1 (2) The department shall pay directly to an obligee the amount

_2 of periodic retirement payments or lump sum payment, as

_3 appropriate, specified in the dissolution order if the dissolution

_4 order filed with the department pursuant to subsection (1) of this

_5 section includes a provision that states in the following form:

_6 If . . . . . . (the obligor) receives periodic retirement payments

_7 as defined in RCW 41.50.500, the department of retirement systems

_8 shall pay to . . . . . . (the obligee) . . . . . . dollars from such

_9 payments or . . . percent of such payments. If the obligor's debt

10 is expressed as a percentage of his or her periodic retirement

11 payment and the obligee does not have a survivorship interest in

12 the obligor's benefit, the amount received by the obligee shall be

13 the percentage of the periodic retirement payment that the obligor

14 would have received had he or she selected a standard allowance.

15 If . . . . . . (the obligor) requests or has requested a withdrawal

16 of accumulated contributions as defined in RCW 41.50.500, or

17 becomes eligible for a lump sum death benefit, the department of

18 retirement systems shall pay to . . . . . . (the obligee) . . . . . .

19 dollars plus interest at the rate paid by the department of

20 retirement systems on member contributions. Such interest to

21 accrue from the date of this order's entry with the court of

22 record.

23 (3) This section does not require a member to select a standard

24 allowance upon retirement nor does it require the department to

25 recalculate the amount of a retiree's periodic retirement payment

26 based on a change in survivor option.

27 (4) A court order under this section may not order the

28 department to pay more than seventy-five percent of an obligor's

29 periodic retirement payment to an obligee.

30 (5) Persons whose court decrees were entered between July 1,

31 1987, and July 28, 1991, shall also be entitled to receive direct

32 payments of retirement benefits to satisfy court-ordered property

33 divisions if the dissolution orders comply or are modified to

34 comply with this section and RCW 41.50.680 through 41.50.720 and,

35 as applicable, RCW 2.10.180, 2.12.090, 41.26.053, 41.32.052,

36 41.35.100, 41.34.070, 41.40.052, 43.43.310, and 26.09.138.

37 (6) The obligee must file a copy of the dissolution order with

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_1 the department within ninety days of that order's entry with the

_2 court of record.

_3 (7) A division of benefits pursuant to a dissolution order

_4 under this section shall be based upon the obligor's gross benefit

_5 prior to any deductions. If the department is required to

_6 withhold a portion of the member's benefit pursuant to 26 U.S.C.

_7 Sec. 3402 and the sum of that amount plus the amount owed to the

_8 obligee exceeds the total benefit, the department shall satisfy

_9 the withholding requirements under 26 U.S.C. Sec. 3402 and then

10 pay the remainder to the obligee. The provisions of this

11 subsection do not apply to amounts withheld pursuant to 26 U.S.C.

12 Sec. 3402(i).

13 Sec. 3. RCW 41.50.700 and 1991 c 365 s 16 are each amended to read

14 as follows:

15 (1) Except as provided in subsection (3) of this section, the

16 department's obligation to provide direct payment of a property

17 division obligation to an obligee under RCW 41.50.670 shall cease

18 upon the death of the obligee or upon the death of the obligor,

19 whichever comes first. However, if an obligor dies and is

20 eligible for a lump sum death benefit, the department shall be

21 obligated to provide direct payment to the obligee of all or a

22 portion of the withdrawal of accumulated contributions pursuant to

23 a court order that complies with RCW 41.50.670.

24 (2) The direct payment of a property division obligation to an

25 obligee under RCW 41.50.670 shall be paid as a deduction from the

26 member's periodic retirement payment. An obligee may not direct

27 the department to withhold any funds from such payment.

28 (3) The department's obligation to provide direct payment

29 continues for the life of an ex spouse from a preretirement

30 divorce meeting the criteria of RCW 41.26.162(2).

‑‑‑ END ‑‑‑

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